Self Managed Super Fund Loans

It is becoming more common these days for people to take control over their super funds to choose where and what they are invested in.

In 2007, the Superannuation Industry Supervision Act (SIS Act) was updated to allow SMSFs to borrow funds for the purchase of assets like residential and commercial properties.

Is a SMSF the right super fund for me?

There are very strict regulations with these funds to ensure that they are conducted correctly and require annual audits reporting to the ATO. This will incur additional accounting fees and need to be considered when looking at this option.

In all cases before you go down this path you are required to obtain financial advice on suitability of this type of fund for your current super fund value and contributions.

Where do I get the best advice?

Most financial planners can provide advice on these structures and will work through suitability, however I recommend you see someone who specialises in SMSFs and can provide the advice and structures all in one. This will save you having to deal with a separate financial planner and accountant.

Contact me if you required assistance or referral to a financial planner or accountant.

How do I purchase a property through my SMSF?

Once you have received financial advice and have confirmed that you are going to proceed with a SMSF to purchase a property, it’s highly recommended that you then seek the services of Simplified Finance Broking, the next step being equally important.

After fully assessing your current super value and long-term goals, I will compare options and borrowing capacity for your proposed property type to be purchased.

All lenders in this space have different policies, interest rates and fees when it comes to SMSFs and this is why it’s important to apply for a pre-approval first. Depending on the lender they may have specific structure or setup requirements of the SMSF and this could save money and time.

Can I refinance my existing SMSF loan?

In some instances you can refinance your current SMSF loan and like normal loans it’s worth reviewing on an annual basis. The person who originated the loan should automatically complete these reviews.

How do the lenders differ?

The main policy differences between lenders are the maximum LVR’s, interest rates and fees can vary significantly. Don’t always assume that just because you bank with a lender that they will always look after you. Usually they will become complacent and you could find yourself paying a higher rate and unnecessary fees.